Final answer:
The distinction between break-even analysis and target profit analysis lies in the profit goal; break-even analysis aims to cover all costs with zero profit, while target profit analysis seeks to reach a specific profit level.
Step-by-step explanation:
The difference between break-even analysis and target profit analysis is (d) the amount that profit is set at. In break-even analysis, we calculate the number of units a company needs to sell to cover all of its costs (meaning the profit is set to zero). For target profit analysis, we determine the sales needed to achieve a specific, predetermined level of profit. In both analyses, the company's cost structure, including fixed and variable costs, plays a crucial role. We examine fixed costs, variable costs per unit, and the selling price per unit to make these assessments. The formula used for both types of analysis is essentially the same, except for the inclusion of the desired profit figure in the target profit analysis.